Global Market Quick Take: Asia – August 8, 2025

Key points:

• Macro: Fed Governor Waller is reportedly Trump's top choice for the next Fed Chair
• Equities: Eli Lilly down 14.1% after poor trial results
• FX: USDJPY remains within the range defined by 100-DMA and 200-DMA
• Commodities: WTI fell below $64, marking its worst six-day streak since 2023
• Fixed income: Treasuries mixed; weak 30-year auction raised long-end yields

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Disclaimer: Past performance does not indicate future performance.

Macro:

• Reports indicate that Fed Governor Waller is Trump's leading candidate for the next Fed Chair. President Trump also appointed CEA Chair Miran as the interim replacement for Fed Kugler, serving until the end of January.
• US Commerce Secretary Lutnick expects the China deadline to be extended for another 90 days,
• Bank of England reduced interest rates by 25 bps to 4% after a rare two-round vote, due to divisions over inflation and economic softening. Five of nine members supported the cut, highlighting future strain between rising inflation and labor market issues.
• Japan's household spending grew 1.3% in June 2025, a drop from 4.7% in May and below the 2.6% forecast, due to US tariffs and ongoing inflation effects.
• US initial jobless claims increased by 7,000 to 226,000 in late July, above expectations of 221,000. Outstanding claims rose by 38,000 to 1,974,000, surpassing the 1,950,000 forecast, marking the highest unemployment level since November 2021.

Equities: 

• US - On Thursday, the S&P 500 dipped nearly 0.1%, and the Dow dropped 224 points (0.5%) as initial gains eroded due to renewed trade tensions. The Nasdaq 100 rose 0.3%, initially boosted by semiconductor stocks after Trump's 100% tariff announcement on imported chips excluding U.S. manufacturers. However, trade concerns soon dampened sentiment. Investors considered Fed Governor Christopher Waller as Trump's potential pick for Federal Reserve chair, increasing anticipation for a September rate cut. Eli Lilly fell 14.1% after poor obesity drug trial results and Intel dropped 3.1% amid Trump's call for the CEO's resignation, both contributing to market declines. Contrarily, Apple rose 3.2% following its $100 billion U.S. investment announcement.
• EU - STOXX 50 rose 1.4% and the STOXX 600 gained 1.0%, driven by significant advances in the travel & leisure and pharmaceutical sectors. President Trump announced a 100% tariff on imported semiconductors, sparing U.S.-based manufacturers. Novo Nordisk shares jumped 6.7% due to Eli Lilly's rival weight-loss pill trial disappointment, while Maersk surged 5.1% on better-than-expected Q2 profits. Allianz rose 4.1% after beating earnings expectations, Siemens rebounded over 4%, and Henkel climbed 3.4% after increasing its profit forecast. Conversely, Deutsche Telekom fell 4.9% on weak results, and Rheinmetall dropped over 6% after missing sales targets.
• HK - Hang Seng climbed 0.7% to 25,082, reversing initial losses as all sectors ended positively. This marked the fourth consecutive session of gains, buoyed by strong Chinese trade data with exports accelerating in July and imports growing significantly due to Beijing's policy support. Traders watched for progress in U.S.-China tariff negotiations ahead of the August 12 deadline. New World Dev. soared 10.2% on take-private deal rumors, while Sands China, Galaxy Entertainment, and China Resources Land gained 5.0%, 3.4%, and 3.2%, respectively. Investors are now looking to China's July CPI and PPI releases on Saturday.

Earnings this week:

• Friday: Wendy’s (WEN), McDonald's (MCD), Restaurant Brands (QSR)